SSP Group Share Price Climbed 5.58% on Reinstating FY Dividend

The SSP Group PLC (LON: SSPG) share price climbed 5.58% after releasing its full-year results for the year ended 30 September 2023. The food service company demonstrated a remarkable recovery in its performance, achieving full-year revenue of £3.0 billion, marking a substantial 38% increase compared to the previous year.

In the second half of the year, the Group saw revenue growth of 25% on a constant currency basis. This comprised a like-for-like growth of 19%, primarily driven by a further recovery in passenger numbers. 

North America, APAC, and EEME regions were the main contributors to this growth, with net gains of 6% attributed to the mobilisation of new contracts. The strong trading momentum has continued into the new financial year, with Group revenues in the first eight weeks up by an impressive 22% on a constant currency basis.

EBITDA increased significantly to £280 million, up from £142 million in the previous year. This growth was driven by solid revenue performance and effective profit conversion. 

The operating profit margin saw a notable increase of 400 basis points year-on-year, reaching 5.4%. This growth was attributed to operating leverage resulting from the recovery in volumes, alongside an extensive efficiency program and pricing actions that helped mitigate the impact of inflation on the cost base.

Underlying pre-IFRS 16 EPS stood at 7.1p per share, compared to a loss of 4.5p per share in the previous year. Reported EPS reached 1.0p per share, compared to a loss of 1.3p per share in the same period the previous year.

The strong profitability and earnings recovery have given the Group the confidence to propose the resumption of ordinary dividend payments.

Patrick Coveney, CEO of SSP Group, said: “This has been a year of strong financial, operational and strategic progress for SSP. We are continuing to lay the foundations for accelerated expansion in key growth markets such as North America and Asia Pacific. We are also making clear strides in enhancing our customer proposition, our digital capabilities and our sustainability initiatives. Our ongoing focus on these areas has led to SSP delivering strong like-for-like growth, high levels of new business, a robust margin recovery, and even closer relationships with our clients and brand partners.”

SSP Group share price. 

The SSP Group share price climbed 5.58% to trade at 223.40p from Monday’s closing price of 211.60p.